Pete the Planner: Make a list of tasks to guide your financial decisions

One year, I committed to doing 10,000 pushups. Another year, I resolved to save $20,000 that I otherwise wouldn’t have saved. And then there was the year I decided it was a good idea to lose 50 pounds. Check. Check. Check.

I don’t have that level of commitment anymore. I’m no longer a 30-something grinder filled with boundless energy and hope. I’m a slightly gnarled, tired man who’s nearly 50 years old. My New Year’s resolutions look different now. They’re modest, tame and significantly more calculated. So let’s spend some time together learning how you, too, can set more meaningful goals.

There are two primary stages to your financial life, but digging deep into those two stages will provide you with plenty of direction. The two stages are the accumulation phase and the distribution phase. On the surface, the accumulation phase involves gathering all the assets you’ll need to eventually retire. And the distribution phase requires you to tap those resources to accomplish everything you’ve ever wanted to accomplish, while also trying not to run out of money.

If you’re in the accumulation phase like I am, it’s important to acknowledge other elements that might either enhance or delay success. Too often, people become overwhelmed by the details, then the most basic elements of a plan never get formed. It’s the difference between being the passenger versus the driver.

At the risk of freaking you out, I propose listing all the elements of your financial life that need to fall into place before entering the distribution phase.

I’ll help by sharing mine.

I must invest the correct amount of money, earn the correct return, secure transportation for two kids, somehow absorb the insurance cost of two teen drivers, pay for two college educations, pay off my mortgage, maintain the proper emergency fund, account for extended-family financial needs and possibly pay for a wedding (trust me, nothing imminent here).

Great, now I’m panicking. This might have backfired.

See how much more nuanced the accumulation phase of your life is than maybe you initially thought? If you don’t identify the individual elements of the stage, it’s incredibly easy to accomplish nothing. It’s possible your list is longer than mine, or it could be shorter, easier or even harder.

That’s why this year, I’m focusing on completing a few of these things. Yes, some of the elements are still on autopilot, like regular retirement-plan contributions and regular mortgage payments. But with enough focus and intention, I can actually remove some of these elements from the list forever.

I’ve long believed the most underused financial planning tool is a calendar. People consistently find themselves surprised by the passing of time. Looking at a calendar when you’re planning finances forces you to take time horizon into consideration. It will make prioritization easier, and it should make you properly whelmed.

Your efforts to reach long-term goals should be automated, while your efforts to reach short-term goals should be emboldened with laser focus and small sprints. Therefore, you should either resolve to automate your efforts toward your long-term goals appropriately or you should sprint to accomplish one of your short-term goals.

I wish someone would have told me that in my 30s.

Intense, unfocused effort is fun and all. But wouldn’t it be great to actually check some of those Herculean tasks off your list? The only way to do this is to first create the list, then focus on shrinking the list you just created.

I don’t regret doing 10,000 pushups in one year or saving $20,000 or even losing 50 pounds. But in retrospect, all of those resolutions seem arbitrary and strangely self-indulgent. I’m only telling you about them so I receive the ping of embarrassment I probably deserve.

If you’re going to take the time to set goals for this year, just make sure the goals matter. They must unburden you, not just give you fodder for a cocktail party you don’t want to be at.

I will extend myself a bit of grace. Doing what I’m suggesting is much easier when you’re in your 40s and 50s because the sheer number of tasks increases substantially.

As the new year begins, be sure to ask yourself what task completion would make your life easier, then march steadfastly in that direction.•

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Dunn is CEO of Your Money Line powered by Pete the Planner, an employee-benefit organization focused on solving employees’ financial challenges. Email your financial questions to askpete@petetheplanner.com.